1 PROPOSED GCOS DONOR FUND A Progress Report to SBSTA Intersessional Meeting 2 June 2003 S L Barrell Australia

2 Proposed GCOS Donor Fund  Origin  Rationale  Objective  Process  Challenges and risks  Features  Implementation issues  Next steps

3 Origin of proposal  Decision 14/CP.4 – Addressing priorities for improved global monitoring – Options for financial support  Subsequent SBSTA Conclusions  Critical gaps in funding options Addressing diversity of needs Lack of coordinated mechanism Global vs national/regional priorities  US announcement on funding Call for matching contributions  Impending Second Adequacy Report Pathway for implementation

4 GCOS Fund – why bring to SBSTA?  Relevance to UNFCCC Meet commitments under Art 4.2g&h, Art 5 Implementation of COP Decisions Implementation of 2AR recommendations  Visibility To broader climate change community All countries, all portfolios  Governance of fund Member countries of GCOS sponsors As member countries, not as Parties to UNFCCC  Information not negotiation  Why GCOS?

5 Global Climate Observing System Global Ocean Observing System (GOOS) Ocean Global Terrestrial Observing System (GTOS) Land WMO WWW Global Observing System (GOS) Atmosphere WMO Global Atmospheric Watch (GAW) Atmospheric Chemistry WMO World Hydrological Cycle Observing System (WHYCOS) Land/Water Other component systems

6 Objective of Proposed GCOS Fund To provide:  A stable, long-term, flexible funding source;  Addressing highest priority needs for key (baseline) elements;  Of an agreed global observing system for climate;  In developing countries;  In support of UNFCCC and others;  On the basis of voluntary contributions;  Complementing existing funding, coordination & implementation mechanisms

7 Process so far  Concept developed  Donor Fund and Board  Australian intervention at SBSTA17  Informal discussion paper circulated  SBSTA17 conclusions  Requested GCOS SC to explore  Informal meeting, Geneva February 2003  GCOS SC meeting, Melbourne April 2003  Progress report to SBSTA18

8 Challenges and risks  Possible overlaps with other mechanisms  Competition for donor resources  Competition for monitoring priorities  Sustainability of new/resumed stations  Factors other than funding  Potential manipulation of priorities  Donor preferences for one-off vs ongoing contributions  Complex financial/management structure required  Cost/overheads of administration of fund

9 Proposed features  Donor Board Management, oversight, priority setting Advised by GCOS SC and Science Panels Establish guidelines for funds allocation Monitor and review implementation activities  Donors countries, agencies, institutions, etc  Contributions Option 1: Untargeted (cash) contributions, allocated by Board Option 2: Targeted (cash or in kind) contributions

10 More proposed features  Develop & sustain critical mass of funding More effective use of limited resources Avoid duplication, optimise opportunities Generate sustained resource stream through investment  Address global priorities Within context of national/regional programs Complement & build on national/regional activities Complement, not replace bi-lateral arrangements

11 More proposed features  Address breadth of funding needs Capacity building Infrastructure, establishment & maintenance Sustained operating support  End-to-end integrated approach to funding and implementation  Develop and implement cross-cutting approaches Across all climate regimes and disciplines Including data management and exchange

12 More proposed features  Transparent allocation and reporting procedures  Utilise & build on existing funding, coordination and implementation mechanisms Cooperative arrangements with other mechanisms Co-finance especially for capacity building activities Regional implementation

13 Implementation issues  Establishment of Donor Board Membership Participation self-funded  Location of fund GCOS Trust Fund Distinct identity for Donor Fund  Methods of contribution Options 1 or 2 Controls on Option 2  Management of fund Program manager within GCOS Office Priorities set by Board

14 More Implementation Issues  Monitor implementation Avoid duplication Set goals and performance measures Maximum use of existing mechanisms eg WMO/VCP Collaboration with regional mechanisms eg SPREP Utilise existing monitoring systems eg GCOS Monitoring Centres Collaborate in establishing new mechanisms  Recipients of funds Early focus on LDCs Early focus on key baseline systems eg GUAN Aim at self-sufficiency Exclude staff and telecommunications costs

15 More Implementation Issues  Consultation & linkages with stakeholders Actual and potential donors GCOS Steering Committee GCOS Office GCOS sponsoring agencies Potential recipients UNFCCC Other funding and implementation mechanisms  Need to keep as simple as possible

16 Next steps  GCOS SC gave “strong endorsement”  Need to consider views of all stakeholders But not an issue for SBSTA negotiation  High level planning meeting of potential donors Before COP-9 Convened by GCOS SC Flesh out details of establishment and operation of Donor Fund and Donor Board NOT a commitments meeting  Report back to SBSTA-19 / COP-9

17 Summary  Proposal recognises a gap in existing funding mechanisms Addressing global priorities Meeting wide range of funding needs Integrated and cross-sectoral approach  and an opportunity to create an effective critical mass of funding  Donors to have strong voice in allocation & implementation Strong support from many stakeholders  Ambitious but achievable